Hong Kong-based conglomerate PCCW is planning to launch an ambitious US$1.4 listing of its telecom unit on 9 November despite volatile markets, according to a Reuters report citing sources.
The IPO would reportedly be the largest in Hong Kong since the…
Hong Kong-based conglomerate PCCW is planning to launch an ambitious US$1.4 listing of its telecom unit on 9 November despite volatile markets, according to a Reuters report citing sources.
The IPO would reportedly be the largest in Hong Kong since the US$1.7bn listing of Citic Securities in September.
PCCW started premarketing the listing in late October, saying at the time that the telecom unit needs to achieve a minimum market capitalisation of HK$28.6bn (US$3.6bn) for the listing to go ahead.
However, PCCW itself only had a market cap of HK$21.02bn (US$2.7bn) before premarketing started.
The unit will be listed as a business trust, a first for the Hong Kong Stock Exchange.
Following the IPO, PCCW will retain between 55% and 70% of the business trust, allowing media tycoon and chairman Richard Li to raise money without giving up control of the fixed-line operations.
Proceeds from the transaction are expected to be used for debt repayment. Bookrunners on the deal reportedly include DBS, JP Morgan, Standard Chartered, CICC, Deutsche Bank, Goldman Sachs and HSBC.
